Bitcoin reverses early gains, drops below $88,000 as Nasdaq futures wilt
Bitcoin reversed Asian session gains, dropping below $88,000 and affecting major altcoins.
What to know:
Bitcoin reversed Asian session gains, dropping below $88,000 and dragging major altcoins lower.
The decline aligns with a drop in Nasdaq futures, highlighting their strong positive correlation.
Traders have reduced their leveraged positions as open interest in futures has decreased, reflecting cautious market sentiment.
Bitcoin BTC$87,813.17 reversed gains made earlier in Asia, puncturing nascent recovery rallies in major alternative cryptocurrencies.
The leading cryptocurrency by market value dropped below $88,000, having peeped above $90,000, CoinDesk data show. Major altcoins including XRP$1.8794, ether ETH$2,966.61, solana SOL$125.73 and DOGE$0.1254 also retraced their adances. The CoinDesk 20 Index (CD20) pulled back to 2,726, roughly where it was in early Asia before it popped to 2,789.
The decline is consistent with weakness in stock index futures. As of writing, futures tied to Wall Street's tech-heavy Nasdaq 100 Index traded 0.5% lower on the day, pointing to a cautious start to trading.
BTC and the Nasdaq share a strong positive correlation that becomes more pronounced during Nasdaq downtrends, according to Wintermute.
